Trade XTI/USD and XBR/USD with Titan FX Technology MT4
Trade Energy Commodities like Crude Oil
Titan FX has improved the range of tradable commodities with the addition of two exciting new oil pairs: XTI/USD (West Texas Intermediate Crude or US Oil) and XBR/USD (Brent Crude or UK Oil). While the oil market is increasingly globalised, unique traits of the production regions as well as the ever-changing global economy have created trading opportunities for these two different oil contracts.
There are various factors that contribute to fluctuations in crude oil prices, amongst which the most important is the political and economic situation of oil producing countries. Trends in countries with large output such as the USA, Saudi Arabia, and Russia have a significant impact on crude oil values. Particularly the member countries of OPEC (Petroleum Export Organisation) such as Saudi Arabia, Iran and Iraq produce a large portion of crude oil production in the world; thus, the crude oil market closely monitors the production volumes and current affairs in the region.
The crude oil market is influenced by not only oil producing countries but also the world economy as a whole especially the economic conditions of countries that rely heavily on oil import. Due to the rapid economic growth of emerging countries such as China and India from the early 2000s, crude oil demand increased sharply lifting its price higher. However, in the past few years, the economic slowdown of these emerging countries leading to slugging demand of their oil import and progress of shale oil development in the U.S have attributed to supply overflows, and crude oil prices declined remarkably in 2015. Also, the demand and supply of crude oil are greatly affected by weather as well as the events such as natural disasters in the oilfield area. Plus, the consumption of crude oil varies depending on the season.
Another important factor is the US Dollar market. Since the crude oil market is mainly traded against the US Dollar, the trend in the US Dollar market makes a great impact. Hence, the recent depreciation of crude oil prices was influenced by the strengthening of the US Dollar to some extent. All in all, the crude oil market has many factors that influence its value often with high volatility.
Crude oil trading units are in barrels, and 1 barrel is approximately 159 liters.
XTI/USD is a spot commodity based on West Texas Intermediate Crude Oil (WTI) -low sulfur and light sweet oil produced in the Western Texas and Southeast of New Mexico in the U.S.
Although its production is comparatively small, the WTI market has the highest liquidity amongst other energy products, and with the high transparency of the market, its market is regarded as an indicator of overall global economy. Since it is largely used in the U.S., a country that consumes the most amount of crude oil in the world, WTI is characterised as an important indicator of the U.S. economy as well.
Brent Oil (XBR/USD)
XBR is a spot commodity based on Brent crude oil from North Sea. It is light oil with minimal sulfur extracted from the North Sea oil field in the UK, also known as London Oil. Brent Crude Oil accounts for two-thirds of the world crude oil, and just like WTI, it is traded with high liquidity and transparency in the market both for the real demand and speculation.
|Brent Oil||XBR/USD||03:00 - 23:59|
|WTI Oil||XTI/USD||01:00 - 23:59|
|Energy - Oil||Standard/Islamic|
Brent Crude vs US Dollar
|0.71 pips||0.59 pips|
West Texas Intermediate vs US Dollar
|0.69 pips||0.57 pips|